How does insurance work on a courtesy vehicle?

How insurance works on a courtesy vehicle in Australia depends on whether it is a repairer loan car or insurer-provided hire car. For a repairer-provided courtesy car, which is a free loan car from the smash repairer while your car is being repaired, the repairer owns the car and has comprehensive and third party insurance on it under their business fleet insurance. When you sign the loan agreement, you are covered to drive it under their policy as an authorised driver, provided you are over 21 or 25, have a valid licence, and obey conditions like no drink driving. If you have an accident, the repairer's insurance covers damage to other people's cars and property, and damage to the courtesy car itself, but you are responsible for paying the excess stated in agreement, typically $1,500 to $3,000, and any damage to tyres, windscreen or interior may be excluded. For an insurer-provided hire car from Hertz, Avis or Budget arranged by your comprehensive insurer after a not-at-fault accident or theft, the rental agreement includes basic insurance with a high excess of $2,000 to $4,500 for damage and theft, and you are liable for that excess if at fault. You can buy excess reduction for $20 to $35 per day to lower excess to $300 to $500. Your own comprehensive car insurance on your own car does not automatically cover the courtesy car for damage, unless your policy has an extension for driving other cars which usually only provides third party property cover up to $5,000 to $10,000 for damage you cause to others, not to the courtesy car itself.